Question 1 A company produces a single product called the Fidget. The following information relating to the next year has been provided: Sales Less Variable expenses Contribution margin Less Fixed expenses Net operating income $ 1,200,000 840,000 360,000 300,000 60,000 The company plans to sell 15,000 next year Required: a. b. c. d. Calculate the contribution margin per unit and the contribution margin ratio [3 marks] Compute the breakeven point in units and dollar value [4 marks] Compute the number of units to be sold in order to earn a profit of $36,000 (4 marks] Calculate the sales value required to earn a profit of $36,000 if the tax rate is 25% (5 marks) Calculate the margin of safety ratio [3 marks) Using an excel sheet, prepare the breakeven chart assuming that the company sells 15,000 units [9 marks] State two (2) assumptions of CVP analysis [2 marks] e. f. g